For nearly twenty plus years ERP has been a valued solution for manufacturing and distribution industries. The software has helped improved operations with enhancements to productivity, profitability, growth and overall business processes. Now in more recent years, ERP is seeing an increase in demand in the healthcare industry.
According to HIMMS Analytics research, this market is growing and only approximately 20 percent of healthcare systems have implemented ERP software. This void in ERP adoption provides an increasing opportunity for ERP vendors sell their ERP systems, financial applications, and business intelligence packages.
Like the manufacturing and distribution industries, hospitals are also interested in improving operational efficiencies, while also reducing labor and inventory costs. It is also vital for hospitals to improve the information flow and communications between departments and doctors in order to provide timely and correct care. Unlike many traditional industries, inaccurate or missing information can cost lives in the healthcare industry.
Key Benefits Provided by ERP Software for the HealthCare Industry
- Business Intelligence – BI software helps measure a hospital’s operational performance, by providing key information to managers for budgeting, status of a requisitions, and patient visitation analytics. Physicians also find BI tools a valuable asset for in providing the right care, to the right patient, and at the right time.
- Better Patient Care – New hospitals are opening in large numbers across the USA, so patients (i.e. customers) now have a choice which hospital they would like to use for medical care. This increase in competition has forced hospitals into ERP selection projects so they can utilize “state-of-the art’ computer systems. An efficient hospital will ultimately improve patients’ comfort and satisfaction, therefore increasing their ability to capture new patients.
- Reduce Operational Costs – Hospitals are businesses too! As a for profit organization, they need to control operational costs and do whatever possible to increase profitability. Hospital ERP systems will help in reducing overhead by integrating departments such as billing, finance, inventory and supplies, and human resources.
- Integration – Many healthcare systems (approximately 75-80%) are still running on very old, dispersed software systems. These old systems have many custom interfaces written that are very outdated, difficult to maintain, and costly. They need an integrated ERP system that will streamline information throughout the hospital, their outpatient facilities and other, affiliated healthcare facilities.
Manufactures and distributors are no longer the only organizations who view ERP as a necessity. It is quickly becoming a mainstream for the healthcare industry. While an ERP implementation may be a significant investment, hospitals are realizing ERP software is necessary to remain competitive and to support their growth, acquisitions and consolidations in the 21st century.